Ryan promises to overhaul tax code this year despite hurdles

WASHINGTON (AP) — House Speaker Paul Ryan is promising to
overhaul the tax code by the end of the year despite political
divisions among Republicans and a crowded legislative agenda for
Congress.

Ryan is due to give a speech on tax reform Tuesday afternoon to
the National Association of Manufacturers. In excerpts released
by his office, Ryan says Republicans, who control Congress and
the White House, have a rare opportunity to re-write the tax code
for businesses and individuals.

"We are going to get this done in 2017. We need to get this done
in 2017. We cannot let this once-in-a-generation moment slip,"
Ryan says in prepared remarks. "Transformational tax reform can
be done, and we are moving forward. Full speed ahead."

According to Ryan's office, the Wisconsin Republican will "warn
against accepting half measures or believing there is a path to
reform without obstacles and political challenges."

That's an apparent jab at a growing number of Republicans who
simply want to cut taxes rather than simplify the tax system and
make it more efficient.

Ryan's office says he will make the case for permanent tax reform
— rather than a temporary tax cut.

The obstacles in Congress are many.

Ryan supports a new tax on imports to help finance a lower
overall tax rate for corporations, and to encourage U.S.
companies to stay in the United States. The tax, however, has no
support in the Senate and is vigorously opposed by retailers who
worry that it will increase the cost of consumer goods.

Ryan's office said, "He will not litigate the issues currently
being resolved between the House, Senate, and (Trump)
administration, but he will describe the important components of
any reform."

Republicans are planning to pass a tax package under a procedure
in which they need only a simple majority in the Senate —
preventing Democrats from blocking it. Under the procedure, the
tax package cannot add to long-term budget deficits.

That means for every tax cut, there has to be a tax increase, at
least over the long term.

There's more. In order to take advantage of the procedure,
Republicans in the House and Senate must pass a budget
resolution. That won't be easy because there are big
disagreements among Republicans over spending levels for the
military and for domestic programs.

Also, the legislative calendar is crowded with other hard-to-do
initiatives.

The Senate is currently grappling with how to repeal and replace
President Barack Obama's health care law. The House already
passed a bill but it was not well-received in the Senate.

Congress is facing an Oct. 1 deadline to fund the government, and
sometime this fall, Congress will have to extend the authority of
the federal government to borrow money or risk an unprecedented
default.

All of these issues are heavy political lifts that will take time
and political capital to resolve.